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Notes to Accounts of India Glycols Ltd.

Mar 31, 2015

1. SHARE CAPITAL

a) Terms/rights attached to equity shares:

The Company has only one class of shares referred to as equity shares having a par value of RS. 10/- per share. Each holder of equity shares is entitled to one vote per share.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

2 (A) CONTINGENT LIABILITIES NOT PROVIDED FOR (AS CERTIFIED BY THE MANAGEMENT):-

(i) In respect of:- (RS. in Lacs)

Particulars As on As on March 31,2015 March 31,2014

Central Excise/ State Excise 22,644.34 19,592.03

Customs 1,025.70 860.10

Service Tax 70.76 66.46

Sales Tax 18.24 28.79

Other matters 958.75 2,021.94

Total 24,717.79 22,569.32

(ii) Bills discounted with banks RS. 3,829.60 Lacs (Previous Year : RS. 5,258.74 Lacs).

(iii) Corporate Guarantee to banks for loan availed by Shakumbari Sugar & Allied Industries Limited (a subsidiary company) amounting to RS. 12,045.43 Lacs (Previous Year 12,428.52). (Refer Note No. 32A(iii))

(B) Custom duty saved on import of raw material under Advance License pending fulfillment of export obligation is amounting to RS. 3,026.13 Lacs (Previous Year RS. 1,935.70 Lacs).

The management is of the view that considering the past export performance and future prospects there is certainty that pending export obligation under advance licenses,will be fulfilled before expiry of the respective advance licenses. Accordingly and on "Going Concern Concept" basis there is no need to make any provision for custom duty saved.

3. Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances of RS. 2,094.55 Lacs, Previous Year RS. 2,243.59 Lacs) are RS. 2,923.53 Lacs (Previous Year RS. 4,295.71 Lacs).

4. Employees Benefits:

a) Defined Benefit Plan:

The employees' gratuity fund scheme managed by a trust is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The obligation for leave encashment is recognized in the same manner as gratuity.

5.In the earlier years, the State Government of Uttar Pradesh (UP) had imposed a levy of license fee on transfer of alcohol from the distillery to the chemical plant. The levy was challenged by the Company in the Hon'ble Supreme Court and on October 18, 2006 the matter was finally decided by The Hon'ble Supreme Court in favour of the Company. Accordingly, Company had filed an application for refund of amount paid of RS. 507.05 Lacs (Previous Year RS. 507.05 Lacs) (shown as recoverable under the head Short Term Loans and Advances) with State Government of Uttarakhand, which is still pending for refund of the amount.

6. In the earlier years, the State Government of Uttarakhand had levied Export Pass Fee on ENA/R.S. export outside India. The matter is finally disposed of by Hon'ble High Court of Uttarakhand vide its Order dated 9th January, 2012 and has declared the levy of said fee as unsustainable and irrecoverable. Subsequently, on June 8, 2012, vide Uttarakhand Excise (Amendment) Act, 2012, Uttarakhand Government retrospectively revived old notification relating to imposition of export fee on ENA and R.S. The Company filed Writ Petition challenging the above said notification and vide order dated September 12, 2012 the Hon'ble High Court of Uttarakhand has granted stay and restrained State from imposing export fee. Amount of RS. 106.15 Lacs (Previous Year RS. 106.15 Lacs) paid under protest is shown as recoverable from State Govt. of Uttarakhand,under the head Short Term Loans and Advances.

7. (A) (i) Company has investment of RS. 5427.50 Lacs (Previous Year RS. 5,427.50 Lacs)in equity share capital and 10% cumulative redeemable preference share capital in a subsidiary company Shakumbari Sugar and Allied Industries Limited (SSAIL) whose net worth has been fully eroded and SSAIL has also been declared sick industrial undertaking as per the provision of Sick Industrial Companies Act, 1985.

Considering the intrinsic value of the investee assets,long term nature of investment and direction issued by the Hon'ble Board for Industrial and Financial Reconstruction (BIFR)for preparation of revival scheme by the operating agency as appointed, which has been filed with BIFR on 11th January 2014 and also filed TEV (Technical Evaluation Study) with IDBI (Operating Agency) on 09th February, 2015, no provision at this stage is considered necessary by the management against investments made in above stated subsidiary namely SSAIL.

(ii) Loans and advances includes Inter corporate deposit with SSAIL amounting to RS. 1,915.13 Lacs (Previous Year RS. 1,834.83 Lacs) (including interest thereon) and advances of RS. 8,453.81 Lacs (Previous Year RS. 8,375.82 Lacs), where management is confident about recoverability/ realisability of the same. Accordingly, considering the facts as stated in Para (i) above, amount is considered good and fully recoverable and no provision there against is considered necessary by the management.

(iii) Central Bank of India (CBI) vide its letter dated 28.05.2014 had issued a notice under Section 13(2) of SARFAESI Act 2002 to SSAIL and IGL. The said notice was replied by SSAIL and IGL has challenged the legality of issuance of such notices. CBI, thereafter, on 11.09.2014 had issued another notice under Section 13(4) of SARFAESI on SSAIL and IGL, which has been challenged at DRT, Lucknow. As per the legal opinion, the notice is not valid since SSAIL is registered in BIFR as sick Company.

(B) (i) Short term loans and advances to related party includes Inter Corporate Deposit(ICD) amounting to RS. 14,649.64 Lacs (Previous Year RS. 14,723.64 Lacs) given to IGL Finance Ltd. (IGLFL),a 100% subsidiary of the company. IGLFL in turn had invested funds for short term in commodity financing contracts offered by National Spot Exchange Ltd. (NSEL). NSEL has defaulted in settling the contracts on due dates and for which IGLFL has initiated legal and other action and in turn IGLFL did not pay due amount to the company. Accordingly considering the prudence no interest on above ICD has been accrued for the period from 01-09-2013 to 31-3-2015. However, considering the arrangement of merger of NSEL with Financial Technologies (India) Limited (FTIL) and other measure which have so far been taken for and pending before the Govt. and other authorities, the management is confident for recovery of dues from NSEL over a period of time.

(ii) Pending above no provision has been considered necessary at this stage by the company for exposure in IGLFL of RS. 14,774.64 Lacs (Previous Year RS. 14,848.64 Lacs) (including Investment in capital of RS. 125.00 Lacs), and the above is shown as good and fully recoverable by the management.

(C) Company has received letters dated 30th Oct 2014 and 05th May 2015 from National Stock Exchange of India (NSE), wherein the Company has been advised to reinstate its financial statement w.r.t. qualification raised for the years FY 2012-13 by the statutory auditor on investments and loans to SSAIL (Note no. 32 (A) (i) &(ii)) and suitably rectified the qualification raised for the year FY 2013-14 by the statutory auditor w.r.t. investment and loan to IGLFL (Note no. 32 (B)) respectively. For SSAIL, the Company has written letters to NSE for granting opportunity to represent the case and for IGLFL the Company has requested NSE to clarify the issue for effect to their directive.

(D) The Company has made equity investment of RS. 27.41 Lacs (Previous Year RS. 27.41 Lacs) in its wholly owned subsidiary IGL CHEM INTRENATIONAL PTE Limited, Singapore (IGL CHEM) and their outstanding in its account on account of receivables of amounting to RS. 477.75 Lacs (Previous Year RS. 530.31 Lacs). Due to losses & slowdown in business, net worth of IGL CHEM becomes negative. In view of strategic and long term in nature of investment, no provision against the same has been considered necessary by the management.

8. On receipt of approval of the shareholders and NOIDA Authority, during the year the Company had entered into a Business Transfer Agreement (BTA) with wholly owned subsidiary company, IGL Infrastructure Private Limited ('IGL Infra') (formed during the current year) for sale of its Rental Business Division on slump sale basis w.e.f. 30th Mar 2015 for consideration of RS. 18,420.00 Lacs, pending receipt of the final 'NOC' from 2 banks (approval since received). The consideration has been included under Short Term Loans & Advances Receivable. Profit on sale this amounting to RS. 5,194.26 Lacs is included under exceptional items. (Refer Note No. 46(d)).

9. On account of outbreak of fire in cooling tower at Kashipur plant during first quarter of the year, production and profitability was adversely affected. Accordingly, Company had filed a claim with the insurance company for the reinstatement of machinery as well as loss incurred due to business interruption amounting to RS. 622.63 Lacs & RS. 4,192.43 Lacs respectively as assessed by the management and an expert. Till date RS. 348.64 Lacs have been received from the insurance company for the reinstatement of machinery. On prudential basis, the company has accounted for RS. 3,029.63 Lacs (including reinstatement loss RS. 622.63 Lacs). An amount of RS. 2,680.99 Lacs being receivable from the Insurance Company is shown under short term loans & advances, which is considered good and fully recoverable by the management. Final adjustment will be done on settlement of the account by the Insurance Company.

10. During the year a wholly owned subsidiary have been formed to support its business activities in U.S.A IGL CHEM international USA LLC and till date company has made investment of RS. 62.83 Lacs in Share capital (Ref Note no 11).

11. Miscellaneous expenses under other expenses includes CSR expenses amounting to RS. 109.65 Lacs.

12. Other current liabilities includes provision amounting to RS. 13,421.55 Lacs (including for the Previous year RS. 8,369.43 Lacs) made against special discount allowed to an overseas party (Refer Note No. 46(c)), pending receipt of approval of RBI. Further, account/balance is subject to confirmation/reconciliation.

13. During the current year, the Company has computed the depreciation based on useful lives of its fixed assets as specified under Schedule II of the Companies Act, 2013. The carrying value of fixed assets which have completed their useful lives as per the Schedule II as on 1st April 2014 have been charged off against the balance in General Reserve of amounting to RS. 469.85 Lacs (net of deferred tax RS. 248.67 Lacs). Had there not been any change in the useful lives of the fixed assets, the depreciation for the year would have been higher by RS. 676.43 Lacs.

14. In accordance with Companies (Accounting Standards) Amendment Rules 2009 as amended by Companies (Accounting Standards) (Second Amendment) Rules 2011, the Company continued its policy, as exercised in financial year 2008-09, the option of adjusting exchange differences arising on reporting of long term foreign currency monetary items related to acquisition of depreciable capital assets in the cost of the assets to be depreciated over the balance life of the assets and other long term monetary item in the "Foreign Currency Monetary Item Translation Difference" to be amortised over the period of loan. Accordingly: (a) Exchange differences (gain)/ loss relating to long-term monetary items, in so far related to acquisition of depreciable capital assets, arising during the year amounting to RS. 983.59 Lacs (Previous Year RS. 936.50 Lacs) (net of depreciation RS. 10.23 Lacs, Previous Year RS. 25.60 Lacs) adjusted to the cost of fixed assets, and (b) relating to other long-term monetary items arising during the year amounting to RS. 237.22 Lacs (Previous Year RS. 1,206.62 Lacs) (Net of amortization of RS. 541.28 Lacs, Previous Year RS. 655.34 Lacs) are adjusted to "Foreign Currency Monetary Item Translation Difference". As on 31st March 2015, un-amortize amount of RS. 3,880.59 Lacs and RS. 699.01 Lacs (Previous Year RS. 3,080.06 Lacs and RS. 2,275.70 Lacs) is included in Plant & Machinery & CWIP under Note 10 and in Foreign Currency Monetary Item Translation Difference Account under Note 3 respectively.

15. (i) Catalyst is charged to the Statement of Profit & Lossas consumable (Stores & Spares) based on technically assessed useful life (1 to 3 Years).

(ii) Specialized Computer Software is amortized over its useful life of 6 years on SLM basis.

16. Related Parties Disclosure (As identified by the management):

(i) Relationships:

A. Subsidiary Companies

* IGL Finance Limited (IGLFL)

* Shakumbari Sugar and Allied Industries Limited (SSAIL)

* IGLCHEM International PTE. Ltd. (IGLCHEM)

* IGLCHEM International USA LLC (IGLCHEM US) (incorporated on 09.07.2014)

* IGL Infrastructure Private Limited.(IGL Infra) (incorporated on 13.10.2014)

B. Key Management Personnel

* U. S. Bhartia (Chairman and Managing Director)

* M. K. Rao (Executive Director)

* Rakesh Bhartia (Chief Executive Officer) @

* Anand Singhal (Chief Financial Officer) @

* Lalit Sharma (Company Secretary) @

C. Relatives of Key Management Personnel

* Pragya Bhartia

* Jayshree Bhartia

* Anand Singhal (HUF) @

* Rakesh Bhartia (HUF) @

* Alpna Sharma @

D. Enterprises over which Key Management Personnel have significant influence:

* Ajay Commercial Co. (P) Ltd.

* J. B. Commercial Co. (P) Ltd.

* Kashipur Holdings Limited

* Polylink Polymers (India) Ltd.

* Hindustan Wires Limited

* Supreet Vyapaar (P) Ltd.

* Mayur Barter (P) Ltd.

* Facit Commosales (P) Ltd.

* J. Boseck & Co. (P) Ltd.

E. Joint Venture Enterprise

* Kashipur Infrastructure and Freight Terminal Private Limited (KIFTPL)

@ W.e.f 1st April 2014 in accordance with Companies Act, 2013.

(iii) Detail of remuneration to KMP :-

a) Chairman & Managing Director - RS. 151.70 Lacs (Previous Year RS. 295.83 Lacs)

b) Executive Director - RS. 68.78 Lacs (Previous Year RS. 69.08 Lacs)

c) Chief Executive Officer - RS. 185.05 Lacs

d) Chief Financial Officer - RS. 54.24 Lacs

e) Company Secretary - RS. 24.11 Lacs

(iv) Disclosure in respect of Material Related Party transactions during the year:

a) Purchases of Material are from:

* SSAIL RS. 615.73 Lacs (Previous Year RS. 2,406.03 Lacs).

b) Purchase of Services

* Polylink polymers RS. 46.45 Lacs (Previous Year RS. 38.41 Lacs)

* Hindustan Wires RS. 33.71 Lacs (Previous Year RS. Nil)

c) Sales of Material are to:

* IGLCHEM RS. 2,981.47 Lacs (Previous Year RS. 3,656.21 Lacs).

* Hindustan Wires Limited. RS. 281.74 Lacs (Previous Year RS. 293.76 Lacs).

d) Slump Sale to IGL Infra RS. 18,420.00 Lacs (Pervious Year RS. Nil)

e) Inter Corporate Deposit / Other Deposits given includes to:

* ICD given to KlFTPL RS. 1,436.30 Lacs (Previous Year RS. 300.00 Lacs)

f) Inter Corporate Deposit / Others Deposits received back includes from:

* IGLFL RS. 74.00 Lacs (Previous Year RS. 9,290.36 Lacs).

* ICD Received Back from KIFPTL RS. 1,436.30 Lacs (Previous Year RS. 300.00 Lacs)

g) Interest Income includes from:

* SSAIL RS. 135.03 Lacs (Previous Year RS. 135.03 Lacs).

* KIFTPL RS. 36.82 Lacs (Previous Year RS. 4.14 Lacs)

* IGLFL RS. 1,943.58 Lacs (Previous Year RS. 1,676.79 Lacs)

h) Interest Waived off includes from:

* SSAIL RS. 45.81 Lacs (Previous Year RS. Nil).

* IGLFL RS. 1,943.58 Lacs (Previous Year RS. 1,190.42 Lacs)

i) Security Deposit given to US Bhartia RS. 220.00 Lacs (Previous Year RS. 280.00 Lacs)

j) Investment In Equity Share

* KIFTPL RS. 2,440.00 Lacs (Previous Year RS. Nil)

* IGLCHEM Us RS. 62.83 Lacs (Previous Year RS. Nil)

* IGL Infra RS. 5.00 Lacs (Previous Year RS. Nil)

k) Reimbursement of expense made.

* Polylink Polymers (India) Limited RS. 30.01 Lacs (Previous Year RS. Nil)

* KIFTPL RS. 6.85 Lacs (Previous Year RS. 1.07 Lacs)

l) Inter Corporate Deposit received includes from:

* Kashipur Holding Limited RS. 5,308.00 Lacs (Previous Year RS. 2,530.00 Lacs).

* J Boseck & Co. (P) Limited RS. 600.00 Lacs (Previous Year RS. NIL).

* Supreet Vypaar (P) Limited RS. 415.00 Lacs (Previous Year RS. NIL).

m) Inter Corporate Deposit paid back includes to:

* Kashipur Holding Limited RS. 11,152.24 Lacs (Previous Year RS. 2,045.00 Lacs).

* Mayur Barter (P) Ltd. RS. 745.00 Lacs (Previous Year RS. 820.00 Lacs).

* Supreet Vyapaar (P) Ltd. RS. 646.00 Lacs (Previous Year RS. 547.00 Lacs).

* J Boseck & Co. (P) Limited RS. 600.00 Lacs (Previous Year RS. 600 Lacs).

* Facit Commosales (P) Ltd RS. 90.00 Lacs (Previous Year RS. 250 Lacs)

n) Interest Expense includes to:

* Kashipur Holding Limited RS. 294.86 Lacs (Previous Year RS. 549.78 Lacs).

* Supreet Vyapaar (P) Ltd. RS. 21.88 Lacs (Previous Year RS. 39.45 Lacs).

* Mayur Barter (P) Ltd. RS. 67.05 Lacs (Previous Year RS. 93.59 Lacs).

o) Rent Paid to :

* Polylink Polymers RS. 13.48 Lacs (Previous Year RS. 12.00 Lacs)

* Kashipur Holding Limited RS. 7.69 Lacs (Previous Year RS. 6.00 Lacs)

p) Vehicle Lease Paid to:

* Rakesh Bhartia HUF RS. 6.36 Lacs

* Anand Singhal HUF RS. 4.80 Lacs

* Alpna Sharma RS. 3.00 Lacs

q) Inter Corporate Deposit Payable (including interest) includes:

* Kashipur Holding Limited RS. Nil (Previous Year RS. 5,849.90 Lacs).

* Mayur Barter (P) Ltd. RS. Nil (Previous Year RS. 788.61 Lacs)

r) ICD Receivable (including interest) includes:

* Shakumbari Sugar and Allied Industries Limited RS. 1,915.13 Lacs (Previous Year RS. 1,834.83 Lacs). (Maximum balance outstanding during the year RS. 1,915.13 Lacs, Previous Year RS. 1,834.83 Lacs).

* IGL Finance Limited ' 14,649.64 Lacs (Previous Year RS. 14,723.64 Lacs). (Maximum balance outstanding during the year RS. 14,649.64 Lacs, Previous Year RS. 15,857.00 Lacs).

s) Capital Advance receivable:

* Hindustan Wires Limited RS. 1,000 Lacs (Previous Year RS. 1,000 Lacs)

t) Security Deposit receivable:

* Ajay Commercial Co. (P) Limited RS. 240 Lacs (Previous Year RS. 240 Lacs)

* J.B. Commercial Co. (P) Limited RS. 240 Lacs (Previous Year RS. 240 Lacs)

* US Bhartia RS. 500 Lacs (Previous Year RS. 280 Lacs)

u) Others Receivable includes:

* IGL Infra RS. 18,420 Lacs (Previous Year RS. Nil). (Maximum balance outstanding during the year RS. 18,420 Lacs, Previous Year RS. Nil)

* Shakumbari Sugar and Allied Industries Limited RS. 8,453.81 Lacs (Previous Year RS. 8,375.82 Lacs). (Maximum balance outstanding during the year RS. 8,453.81 Lacs, Previous Year RS. 10,135.18 Lacs).

* IGL CHEM International Pte. Ltd. RS. 477.75 Lacs (Previous Year RS. 530.31 Lacs). (Maximum balance outstanding during the year RS. 1,462.93 Lacs, Previous Year RS. 1,403.41 Lacs).

17. Exceptional item includes:

(a) A Provision of RS. 1,100.00 Lacs (Previous Year RS. Nil) has been created against foreign exchange contract related dispute and any liability that may arise therefrom; (b) Loss on account of exchange rate differences amounting to RS. 1,600.55 Lacs (net of gain of RS. 5,064.53 Lacs) [Previous Year RS. 10,803.19 Lacs (net of gain of RS. 11,336.93 Lacs)] for year ended 31st March 2015, on payment, settlement as well as reinstatement of short term foreign currency borrowings and other monetary assets/ liabilities; (c) Provision on account to special discount to an overseas overdue receivables amounting to RS. 5,052.12 Lacs (Previous Year RS. 8,369.43 Lacs), (Refer Note No. 37);(d) Profit on sale of 'Rental Business Division' amounting to RS. 5,194.26 Lacs (Previous Year RS. Nil) (Note No. 33); (e) Loss on sale of spent silver catalyst amounting to RS. 2,480.78 Lacs (Previous Year RS. Nil) and (f) Writing off of export incentive receivable of RS. 756.32 Lacs (Previous Year RS. Nil) which has been recognized in earlier years as per applicable government schemes, in view of remote chances of realization on account of steep fall in price in the international commodity market.

18. a) The Company had entered into a Joint Venture Agreement dated October 12,2011 ("JV Agreement") with Fourcee Infrastructure Equipments Pvt. Ltd. (FIEPL) for setting up a Private Freight Terminal and a company, Kashipur Infrastructure and Freight Terminal Pvt. Ltd. ("KIFTPL") was incorporated on 11th November 2011.Both JV partners have entered into a Joint Venture Termination Agreement for the termination of the JV. Gain on settlement with JV Partner is included under Other Income (Note No 20). Post settlement and purchase of full rights of erstwhile JV Partner (FIEPL) by the company, the Company has entered into a new Joint Venture Agreement with Apollo Logisolutions Limited ('ALS'). ALS as per the agreement has invested in 51% of paid up equity share capital of KIFTPL.

19. Additional Information:

(a) Exchange fluctuation gain of RS. Nil (Previous Year gain of RS. 0.62 Lacs), is net of loss of RS. Nil (Previous Year net of loss of RS. 0.20 Lacs).

(b) The Company uses derivative instruments for hedging possible losses and exchange fluctuation gain is RS. 923.67 Lacs net off loss of RS. 1,270.11 Lacs (Previous Year loss RS. 679.44 Lacs net off gain of RS. 5,253.99 Lacs) which is inclusive of loss of RS. 71.37 Lacs (Previous Year loss of RS. 343.04 Lacs) provision for mark to market gain/loss on account of all outstanding financial transactions as on 31st March 2015.

(c) Considering the principle of prudence and announcement made by The Institute of Chartered Accountants of India 'Accounting for Derivatives' in March, 2008, the Company has provided for an amount of RS. 41.08 Lacs included in (c) (Previous Year RS. 143.63 Lacs) on outstanding contracts to the Statement of Profit & Loss, on account of foreign exchange derivative instruments.

20. Previous year's figures have been regrouped/ rearranged/ recast wherever considered necessary.




Mar 31, 2014

A) Terms/rights attached to equity shares:

The Company has only one class of shares referred to as equity shares having a par value of Rs. 10/- per share. Each holder of equity shares is entitled to one vote per share.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

Notes:

1 The Term Loans inter-se, are secured / to be secured by mortgage of all immovable properties of the Company both present and future and hypothecation of all movable properties of the Company (save and except book debts) including movable machinery, machinery spares, tools and accessories, both present and future subject to prior charges created and / or to be created in favour of the bankers of the Company on stocks, book debts and other specified movable properties for working capital requirements / Buyers Credit.

2 Rupee Term Loans includes loans from Banks of Rs. 32.13 Lacs (Previous Year Rs. 56.86 Lacs) and loans from others of Rs. 10.64 Lacs (Previous Year Rs. 45.52 Lacs) secured by hypothecation of Motor Vehicles purchased there under which is repayable on different dates. Further, Rupee Term Loans from others includes Rs. 708.75 Lacs (Previous Year Rs. 450.00 Lacs) secured against bank guarantee.

3 Term Loan from bank of Rs. 2,500.00 Lacs (Previous Year Rs. 5,000.00 Lacs), is repayable in 4 equal quarterly installments.

4 Term Loan from bank of Rs. 4,978.47 Lacs (Previous Year Rs. 4,978.47 lacs), is repayable in 11 equal quarterly installments of Rs. 417.00 Lacs and 1 installment of Rs. 391.47 lacs commencing from September 2014.

5 Term Loan from bank of Rs. 10,000.00 Lacs (Previous Year Rs. 7,500.00 Lacs), is repayable in 12 equal quarterly installments commencing from April 2015.

6 Term Loan from bank of Rs. 2,499.60 Lacs (Previous Year Rs. 2,500.00 Lacs), is repayable in 12 equal quarterly installments commencing from May 2015.

7 Term Loan from bank of Rs. 2,915.00 Lacs (Previous Year Rs. 4,583.00 Lacs), is repayable in 6 quarterly installments (4 installments of Rs. 417.00 Lacs each and remaining 2 installments of Rs. 623.50 Lacs each).

8 Term Loan from bank of Rs. 1,637.28 Lacs (Previous Year Rs. 3,329.86 Lacs) is repayable in 4 equal quarterly installments. It includes Foreign Currency Loan of Rs. 898.80 Lacs (USD 15.00 Lacs) (Previous Year Rs. 1,656.46 Lacs, USD 30.50 Lacs).

9 Term Loan from bank of Rs. 1,458.33 Lacs (Previous Year Rs. 2,291.67 Lacs), is repayable in 7 equal quarterly installments.

10 Term Loan from bank of Rs. 3,093.75 Lacs (Previous Year Rs. 4,218.75 Lacs), is repayable in 11 equal quarterly installments.

11 Term Loan from bank of Rs. 2,380.00 Lacs (Previous Year Rs. 2,809.00 lacs), is repayable in 66 equal monthly installments of Rs. 35.75 Lacs each and remaining 1 installments of Rs. 20.50 Lacs.

12 Term Loan from bank of Rs. 2,187.50 Lacs (Previous Year Rs. 2,625.00 Lacs), is repayable in 10 equal quarterly installments.

13 Term Loan from bank of Rs. 1,875.00 Lacs (Previous Year Rs. 2,500.00 Lacs), is repayable in 6 equal quarterly installments. 14 Term Loan from bank of Rs. 2,233.46 Lacs (Previous Year Rs. 2,436.50 Lacs), is repayable in 11 equal quarterly installments.

15 Term Loan from bank of Rs. 2,500.00 Lacs (Previous Year Rs. 5,000.00 Lacs), is repayable in 4 equal quarterly installments.

16 Term Loan from bank of Rs. 3,432.95 Lacs (Previous Year Rs. 3,982.96 Lacs), is repayable in 12 equal quarterly installments of Rs. 275.00 Lacs each and remaining 1 installments for Rs. 132.95 Lacs.

17 Term Loan from bank of Rs. 4,375.00 Lacs (Previous Year Rs. 5,000.00 Lacs), is repayable in 7 equal quarterly installments.

18 Term Loan from bank of Rs. 2,551.00 Lacs (Previous Year Nil), is repayable in 12 equal quarterly installments commencing from July 2015.

19 Term Loan from bank of Rs. 5,000.00 Lacs (Previous Year Nil), is repayable in 16 equal quarterly installments commencing from October 2014.

20 Term Loan from bank of Nil (Previous Year Rs. 187.50 Lacs).

21 Term Loan from bank of Rs. 3,761.38 Lacs (USD 62.77 Lacs) (Previous Year Rs. 4,924.43 Lacs, USD 90.67 Lacs), is repayable in 10 equal quarterly installments.

22 Term Loan from bank of Rs. 868.30 Lacs (USD 14.49 Lacs), (Previous Year Rs. 1,784.61 Lacs, USD 32.86 Lacs), is repayable in 3 installments of Rs. 250.00 Lacs each and remaining 1 installments for Rs. 118.30 Lacs.

23 Term Loan from bank of Rs. 9,315.15 Lacs (USD 155.46 Lacs) (Previous Year Rs. 10,802.26 Lacs, USD 198.90 Lacs), is repayable in 10 monthly installments (3 equal monthly installments of Rs. 583.33 Lacs, 3 equal monthly installments of Rs. 833.33 Lacs, 3 equal monthly installments of Rs. 856.67 Lacs and balance in last installment).

24 Term Loan from bank of Rs. 10,201.38 Lacs (USD 170.25 Lacs) (Previous Year Nil), is repayable in 37 monthly installments (33 equal monthly installments of Rs. 271.67 Lacs, 3 equal monthly installments of Rs. 345.00 Lacs and balance in last installment) from April 2015.

25 Term Loan from DBT Bihorama Rs. 450.00 Lacs (Previous Year Rs. 450.00 Lacs) is repayable in 9 equal half yearly installment.

26 Term Loan from DBT Bihorama Rs. 258.75 Lacs (Previous Year Nil) is repayable in 10 equal half yearly installment after completion of the project.

27 Loan from related parties of Rs. 6,910.24 Lacs (Previous Year Rs. 8,093.74 Lacs) is payable after a period of 3 years from the respective date of loans.

* Working Capital Loans from Banks are secured / to be secured by way of hypothecation of book debts and stocks including in-transit and other specified movable properties and second charge on all immovable properties of the Company. Buyers Credit facility is secured against non-fund based facility sanctioned to the Company.

Further Packing credit facility of Rs. 1,570.00 Lacs (Previous Year Nil) (included in working capital loans) are specifically secured by pledge of deposit.

Notes:

* (i) Addition to Plant and Machinery includes foreign exchange fluctuation difference arising under AS-11 (The effect of changes in foreign exchange rates) vide notification no. G.S.R 225 (E) dated 31st March, 2009 issued by Ministry of corporate affairs of Government of India as amended by Companies (Accounting Standards) (Second Amendment) Rules 2011.

* (ii) Includes capitalisation of:

(a) Finance cost: Plant & Machiery Rs. 2,361.03 Lacs (Previous Year Rs. 584.51 Lacs).

(b) Exchange difference: Plant and Machinery Rs. 962.10 Lacs (Previous Year Rs. 419.89 Lacs).

* Gross block includes Rs. 130.39 Lacs (Previous Year Rs. 367.58 Lacs) secured by hypothecation against loan

* Prepaid expenses and loans to employees

*Includes loans to related parties Rs. 964.48 lacs (Previous year Rs. 964.48 lacs)

@ Includes Rs. 760.00 lacs (Previous Year Rs. 480.00 Lacs) security deposit to director, private companies in which director/directors of company is director and are also related parties.

* Pledged with bank/Governement Authorities as margin money/security against guarantees, packing credit facility and other borrowings maturing after 12 months

*Includes in transit Rs. 218.18 Lacs (Previous Year Nil)

*Includes in transit Rs. 356.15 Lacs (Previous Year Rs. 539.85 Lacs)

*Includes business advance of Rs. 8,376.16 Lacs (Previous Year Rs. 5,080.08 Lacs) to related parties and share application money paid Rs. 1462.59 Lacs (Previous Year Nil) to related party.

* Deposit with a related party. 27. (A) Contingent Liabilities not provided for (As Certified by the Management) : (i) In respect of:

Particulars As on As on March 31, 2014 March 31, 2014 Central Excise/ State Excise 19,592.03 10,945.93 Customs 860.10 261.93 Service Tax 66.46 69.02 Sales Tax 28.79 32.67 Other matters 2,021.94 2,012.26 Total 22,569.32 13,321.81

(ii) Bills discounted with Banks Rs. 5,258.74 Lacs (Previous Year: Rs. 15,826.08 Lacs).

(iii) Corporate Guarantee to banks for loan availed by Shakumbari Sugar & Allied Industries Limited (a subsidiary company):

(B) Custom duty saved on import of raw material under Advance License pending fulfillment of export obligation is amounting to Rs. 1,935.70 Lacs (Previous Year Rs. 774.17 Lacs).

The management is of the view that considering the past export performanceand future prospects there is certainty that pending export obligation under advance licenses,will be fulfilled before expiry of the respective advance licenses. Accordingly and on"Going Concern Concept" basis there is no need to make any provision for custom duty saved.

28. Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances of Rs. 2,243.59 Lacs, PreviousYear Rs. 1,345.05 Lacs) are Rs. 4,295.71 Lacs (Previous Year Rs. 7,238.67 Lacs).

29. During previous financial year, Company had issued and allotted 3079000 nos. fully paid up equity shares of Rs. 10 each at the rate of Rs. 138.56 (including premium of Rs. 128.56 per share) on preferential basis in term of the resolution passed in Annual General Meeting held on 15th September, 2012. The total receipts against this issue of Rs. 4,266.26 Lacs have been fully utilized for the purpose as stated in the resolution for which the issue was made.

30. Advances recoverable in cash or kind includes loans and advances in the nature of Loan recoverable from the employees amounting to Rs. 217.32 Lacs (Previous Year Rs. 239.09 Lacs) where there is no interest or interest is below Section 372A of the Companies Act (Maximum Balance outstanding during the year Rs. 381.66 Lacs, Previous Year Rs. 374.07 Lacs). Out of the above Rs. 57.98 Lacs (Previous Year Rs. 79.70 Lacs) either has repayment schedule beyond seven years (Maximum Balance outstanding during the year Rs. 78.44 Lacs, Previous Year Rs. 96.18 Lacs).

b) Defined Benefit Plan:

The employees'' gratuity fund scheme managed by a trust is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The obligation for leave encashment is recognized in the same manner as gratuity.

The estimate of rate of escalation in salary considered in actuarial valuation, taken into account inflation, seniority, promotion and other relevant factors including supply and demand in the employment market. The above information is certified by the actuary.

The principal assumptions are the discount rate & salary growth rate. The discount rate is generally based upon the market yields available on Government bonds at the accounting date with a term that matches that of the liabilities.

32. In the earlier years, the State Government of Uttar Pradesh (UP) had imposed a levy of license fee on transfer of alcohol from the distillery to the chemical plant. The levy was challenged by the Company in the Hon''ble Supreme Court and on October 18, 2006 the matter was finally decided by The Hon''ble Supreme Court in favour of the Company. Accordingly, Companyhad filed an application for refund of amount paid of Rs. 507.05 Lacs (Previous Year Rs. 507.05 Lacs) (shown as recoverable under the head Short Term Loans and Advances) with State Government of Uttarakhand, which is still pending for refund of the amount.

33. In the earlier years, the State Government of Uttarakhand had levied Export Pass Fee on ENA/RS export outside India. The matter is finally disposed of by Hon''ble High Court of Uttarakhand vide its Order dated 9th January, 2012 and has declared the levy of said fee as unsustainable and irrecoverable. Subsequently, on June 8,2012, vide Uttarakhand Excise (Amendment) Act, 2012, Uttarakhand Government retrospectively revived old notification relating to imposition of export fee on ENA and Rs. . The Company filed Writ Petition challenging the above said notification and vide order dated September 12, 2012 the Hon''ble High Court of Uttarakhand has granted stay and restrained State from imposing export fee. Amount of Rs. 106.15 Lacs (Previous Year Rs. 106.15 Lacs) paid under protest is shown as recoverable from State Govt. of Uttarakhand, in the books of account.

34. (A) (i) Company has investment of Rs. 5,427.50 Lacs (Previous Year Rs. 5,427.50 Lacs) in equity shares and 10%

cumulative redeemable preference share capital in a subsidiary company Shakumbari Sugar and Allied Industries Limited (SSAIL) whose net worth has been fully eroded during the previous financial year and SSAIL has also been declared sick industrial undertaking as per the provision of Sick Industrial Companies Act, 1985.

Considering the intrinsic value of the investee assets, long term nature of investment and direction issued by the Hon''ble Board for Industrial and Financial Reconstruction (BIFR) for preparation of revival scheme by the operating agency as appointed, which has been filed with BIFR on 11th January 2014, no provision at this stage is considered necessary by the management against investments made in above stated subsidiary namely SSAIL.

(ii) Loans and advances includes Inter corporate deposit with SSAIL amounting to Rs. 1,834.83 Lacs (Previous Year Rs. 1,713.30 Lacs) (including interest thereon) and advances of Rs. 8,375.82 Lacs (Previous Year Rs. 5,077.63 Lacs), where management is confident about recoverability/ realisability, of the same. Accordingly, considering the facts as stated in Para (i) above, amount is good and fully recoverable and no provision there against is considered necessary by the management.

(B) Short Term loans and advances to related party includes Inter Corporate Deposit amounting to Rs. 14,723.64 Lacs (Previous Year Rs. 1,960.00 Lacs) given to IGL Finance Ltd. (IGLFI), 100% subsidiary of the company. IGLFI in turn had invested funds for short term in commodity financing contracts offered by National Spot Exchange Ltd. (NSEL).NSEL has defaulted in settling the contracts on due dates. However, considering the present state of affairs, action taken by the Govt. and other authorities, the management is confident of recovery of dues from NSEl over a period of time.

Accordingly, against total exposure in IGLFI of Rs. 14,848.64 Lacs (Previous Year Rs. 2,085.00 Lacs) (including Investment in capital of Rs. 125.00 Lacs), no provision has been considered necessary at this stage by the company and shown as good and fully recoverable.

35. The Company has challenged the legality and the validity of the financial derivative transaction dated January 15, 2008 entered into with Standard Chartered Bank, New Delhi (SCB), which is the subject matter of civil suit (Original suit) pending before the Hon''ble High Court of Delhi (High Court) at New Delhi.Provision made in earlier year had been written back in the books of accounts in the year 2011-12 in view of the favorable opinion of the legal consultant and the fact that DRT and DRAT did not entertain application of the SCB and pending final decision of the High Court same has been considered under contingent liability.

36. In accordance with Companies (Accounting Standards) Amendment Rules 2009 as amended by Companies (Accounting Standards) (Second Amendment) Rules 2011, the Company continued its policy, as exercised in financial year 2008-09, the option of adjusting exchange differences arising on reporting of long term foreign currency monetary items related to acquisition of depreciable capital assets in the cost of the assets to be depreciated over the balance life of the assets and other long term monetary item in the"Foreign Currency Monetary Item Translation Difference" to be amortised over the period of loan. Accordingly: (a) Exchange differences (gain)/ loss relating to long-term monetary items, in so far related to acquisition of depreciable capital assets, arising during the year amounting to Rs. 936.50 Lacs (Previous Year Rs. 378.92 Lacs) (net of depreciation Rs. 25.60 Lacs, Previous Year Rs. 40.97 Lacs) adjusted to the cost of fixed assets, and (b) relating to other long term monetary items arising during the year amounting to Rs. 1,206.62 Lacs (Previous Year Rs. 824.43 Lacs) (Net of amortization of Rs. 655.34 Lacs, PreviousYear Rs. 636.14 Lacs) are adjusted to"Foreign Currency Monetary Item Translation Difference".

37. As required by section 22 of The Micro, Small and Medium Enterprises Development Act, 2006 the following information is disclosed:

38. (i) Catalyst is charged to the Statement of Profit & Loss as consumable (Stores & Spares) based on technically assessed useful life (1 to 3 Years).

(ii) Specialised Computer Software is amortised over its useful life of 6 years on SLM basis.

(iii) Disclosure in respect of Material Related Party transactions during the year:

a) Purchases of Material are from:

* SSAIL Rs. 2,406.03 Lacs (Previous Year Rs. 1,914.08 Lacs).

b) Sales of Material are to:

* IGLCHEM Rs. 3,656.21 Lacs (Previous Year Rs. 4,640.34 Lacs).

* Hindustan Wires Limited. Rs. 293.76 Lacs (Previous Year Rs. 225.19 Lacs).

c) Interest Income includes from:

* SSAIL Rs. 135.03 Lacs (Previous Year Rs. 194.26 Lacs).

* IGLFI Rs. 486.37 Lacs (Previous Year Rs. 19.91Lacs).

d) Interest Expense includes to:

* Kashipur Holding Limited Rs. 549.78 Lacs (Previous Year Rs. 669.60 Lacs).

* Supreet Vyapaar (P) Ltd. Rs. 39.45 Lacs (Previous Year Rs. 82.21 Lacs).

* Mayur Barter (P) Ltd. Rs. 93.59 Lacs (Previous Year Rs. 161.74 Lacs).

e) Inter Corporate Deposit / Other Deposits given includes to:

* SSAIL Nil (Previous Year Rs. 4,398.00 Lacs)

* IGLFI Rs. 22,054.00 Lacs (Previous Year Rs. 2,660.00Lacs).

f) Inter Corporate Deposit / Others Deposits received back includes from:

* SSAIL Limited Nil (Previous Year Rs. 4,398.00 Lacs)

* IGLFI Rs. 9,290.36Lacs (Previous Year Rs. 700.00Lacs).

g) Capital advances given:

* Hindustan Wires Limited Rs. 1,000.00 Lacs (Previous year Nil)

h) Inter Corporate Deposit received includes from:

* Kashipur Holding Limited Rs. 2,530.00 Lacs (Previous Year Rs. 1,738.24 Lacs).

* Mayur Barter Rs. 300.00 Lacs (Previous Year Nil).

i) Inter Corporate Deposit paid back includes to:

* Kashipur Holding Limited Rs. 2,045.00 Lacs (Previous Year Rs. 4,040.00 Lacs).

* Mayur Barter (P) Ltd. Rs. 820.00 Lacs (Previous Year Rs. 1,113.00 Lacs).

* Supreet Vyapaar (P) Ltd. Rs. 547.00 Lacs (Previous Year Rs. 350.00 Lacs). j) Inter Corporate Deposit Payable (including interest)includes:

* Kashipur Holding Limited Rs. 5,849.90 Lacs (Previous Year Rs. 5,381.03 Lacs).

* Mayur Barter (P) Ltd. Rs. 788.61 Lacs (Previous Year Rs. 1,298.43 Lacs). k) ICD Receivable includes:

* Shakumbari Sugar and Allied Industries Limited Rs. 1,834.83 Lacs (Previous Year Rs. 1,713.30 Lacs). (Maximum balance outstanding during the year Rs. 1,834.83 Lacs, Previous Year Rs. 4,962.48 Lacs).

* IGL Finance Limited Rs. 14,723.64 Lacs (Previous Year Rs. 1,977.92 Lacs). (Maximum balance outstanding during the year Rs. 15,857.00 Lacs, Previous Year Rs. 1,977.92 Lacs).

l) Others Receivable includes:

* Shakumbari Sugar and Allied Industries Limited Rs. 8,375.82 Lacs (Previous Year Rs. 5,077.63 Lacs). (Maximum balance outstanding during the year Rs. 10,135.18 Lacs, Previous Year Rs. 8,878.31 Lacs).

* IGL CHEM International Pte. Ltd. Rs. 530.31 Lacs (Previous Year Rs. 675.56 Lacs). (Maximum balance outstanding during the year Rs. 1,403.41 Lacs, Previous Year Rs. 1,310.79 Lacs).

m) Capital advances receivable:

* Hindustan Wires Limited Rs. 1,000.00 Lacs (Previous year Nil)

43. Balances of certain debtors, creditors, other liabilities and loans and advances are in process of confirmation and/ or reconciliation. Management is confident that on final reconciliation/ confirmation of these, there will not be any material adjustment.

44. In previous year foreign exchange gain amounting to Rs. 312.63 Lacs, net of Loss of Rs. 4,361.19 Lacs has been included in the respective heads of accounts in the Statement of Profit & Loss. This has no impact on Profit / Loss for the year.

45. Exceptional item includes:

a) Loss on account of exchange rate differences amounting to Rs. 10,803.19 Lacs (net of gain of Rs. 11,336.93 Lacs) for year ended 31st March 2014, on payment, settlement as well as reinstatement of short term foreign currency borrowings and other monetary assets/ liabilities, and

b) Provision made, against amount receivable from an overseas debtors, on account of special discount due to steep fall in the natural gum prices and quality issues amounting to Rs. 8,369.43 Lacs, pending final reconciliation and necessary approval from Reserve Bank of India. The same has been included in other payables under "Other Current liabilities.

46. a) The Company had entered into a Joint Venture Agreement dated October 12, 2011 ("JV Agreement") with Fourcee Infrastructure Equipments Pvt. Ltd. (FIEPL) for setting up a Private Freight Terminal providing railway based logistic services and other facilities at Kashipur, Uttarakhand through Kashipur Infrastructure and Freight Terminal Pvt. Ltd. ("JV Company"). The Company and FIEPL equally hold 50% stake in the JV Company. The Company has invested Rs. 0.50 Lacs (Previous Year Rs. 0.50 Lacs) in JV Company till March 31, 2014 and in term of the JV agreement has also transferred 33.404 acres of land worth Rs. 1,462.59 Lacs in the JV Company towards its equity contribution as share application money, which is pending for allotment of equity shares. On 26th December, 2013, the Company has served a notice on the other partner for terminationof the JV agreement. Pursuant to the said notice, follow up actions, are being taken. On this account, the company does not expect any material impact on the state of affairs.

b) In compliance with Accounting Standard 27 on Financial Reporting of Interest in Joint Ventures, following disclosures are made in respect of jointly controlled entity - Kashipur Infrastructure and Freight Terminal Private Limited, in which the Company is a joint venturer:

Notes:

Primary Segment reporting (by business segment)

Segments have been identified in line with Accounting Standard on ''Segment Reporting'' (AS-17), taking into account the organisational structure as well as the differential risks and returns of these segments. The Company has identified three segments i.e. business Industrial chemical, Liquor and others which includes herbal products and reported accordingly.

Secondary Segment reporting (by geographical segment-customer location) In respect of secondary segment information, the Company has identified its geographical segment as (a) domestic and (b) overseas on the basis of location of customers.

Reportable segments

Reportable segments have been identified as per the quantitative criteria specified in ''Accounting Standard 17: Segment Reporting''.

Segment Composition

Industrial Chemicals Segment comprises Glycols, Specialty Chemicals, Natural Gum and other related goods etc.

Liquor Segment comprises manufacture and sale of Ethyl Alcohol (Potable).

Others'' primarily includes Herbal Products and Rental.

(b) Exchange fluctuation gain of Rs. 0.62 Lacs (Previous Year loss of Rs. 6,505.09 Lacs), is net of loss of Rs. 0.20 Lacs (Previous Year gain of Rs. 1,652.91 Lacs). (Also refer notes 44 and 45).

(c) The Company uses derivative instruments for hedging possible losses and exchange fluctuation loss is Rs. 679.44 Lacs net off gain of Rs. 5,253.99 Lacs (Previous Year Rs. 1,746.57 Lacs net off gain of Rs. 618.13 Lacs) which is inclusive of loss of Rs. 343.04 Lacs (Previous Year gain of Rs. 60.83 Lacs) provision for mark to market gain/loss on account of all outstanding financial transactions as on 31st March 2014.

(d) Considering the principle of prudence and announcement made by The Institute of Chartered Accountants of India ''Accounting for Derivatives'' in March, 2008, the Company has provided for an amount of Rs. 143.63 Lacs included in (c) (Previous Year Rs. 6.58 Lacs) on outstanding contracts to the Statement of Profit & Loss, on account of foreign exchange derivative instruments.


Mar 31, 2013

1. (A) CONTINGENT LIABILITIES NOT PROVIDED FOR (AS CERTIFIED BY THE MANAGEMENT) :

(i) In respect of:

(Rs. in Lacs)

Particulars As on As on March 31, 2013 March 31, 2012

Central Excise/ State Excise 10945.93 4,573.52

Customs 261.93 261.93

Service Tax 69.02 182.28

Sales Tax 32.67 31.84

Other matters 2,012.26 2,003.36

Total 13,321.81 7,052.93

(ii) Bills discounted with Banks Rs. 15,826.08 Lacs (Previous Year: Rs. 7,925.98 Lacs).

(iii) Corporate Guarantee to banks for loan availed by Shakumbari Sugar & Allied Industries Limited (a subsidiary company):

(B) Custom duty saved on import of raw material under Advance License pending fulfillment of export obligation is amounting to Rs. 774.17 Lacs (Previous Year Rs. 1,617.19 Lacs).

The management is of the view that considering the past export performance and future prospects there is certainty that pending export obligation under advance licenses,will be fulfilled before expiry of the respective advance licenses. Accordingly and on "Going Concern Concept" basis there is no need to make any provision for custom duty saved.

2. Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances of Rs.1,345.05 Lacs, Previous Year Rs. 4,390.11 Lacs) are Rs. 7,238.67 Lacs (Previous Year Rs. 9,075.68 Lacs).

3. During the year, Company has issued and allotted 3079000 nos. fully paid up equity shares of Rs. 10 each at the rate of Rs.138.56 (including premium of Rs.128.56 per share) on preferential basis in term of the resolution passed in Annual General Meeting held on 15th September, 2012. The total receipt against this issue of Rs. 4,266.26 Lacs have been fully utilized for the purpose as stated in the resolution

4. Advances recoverable in cash or kind includes loans and advances in the nature of Loan recoverable from the employees amounting to Rs. 239.09 Lacs (Previous Year Rs. 224.40 Lacs) where there is no interest or interest is below Section 372A of the Companies Act (Maximum Balance outstanding during the year Rs. 374.07 Lacs, Previous Year Rs. 353.14 Lacs). Out of the above Rs. 79.70 Lacs (Previous Year Rs. 59.47 Lacs) either has repayment schedule beyond seven years or there is no repayment schedule (Maximum Balance outstanding during the year Rs. 96.18 Lacs, Previous Year Rs. 75.39 Lacs).

5. Employees Benefits:

a) Defined Contribution Plan:

Contribution to Defined Contribution Plan, recognized as expense for the year are as under:

b) Defined Benefit Plan:

The employees'' gratuity fund scheme managed by a trust is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The obligation for leave encashment is recognized in the same manner as gratuity.

6. In the earlier years, the State Government of Uttar Pradesh (UP) had imposed a levy of license fee on transfer of alcohol from the distillery to the chemical plant. The levy was challenged by the Company in the Hon''ble Supreme Court and on October 18, 2006 the matter was finally decided by The Hon''ble Supreme Court in favour of the Company. Accordingly, Company had filed an application for refund of amount paid of Rs. 507.05 Lacs (shown as recoverable under the head Short Term Loans and Advances) with State Government of Uttarakhand, which is still pending for refund of the amount.

7. In the earlier years, the State Government of Uttarakhand had levied Export Pass Fee on ENA/RS export outside India. The matter is finally disposed of by Hon''ble High Court of Uttarakhand vide its Order dated 9th January, 2012 and has declared the levy of said fee as unsustainable and irrecoverable. Subsequently, on June 8,2012, vide Uttarakhand Excise (Amendment) Act, 2012,Uttarakhand Government retrospectively revived old notification relating to imposition of export fee on ENA and Rs. The Company filed Writ Petition challenging the above said notification and vide order dated September 12, 2012 the Hon''ble High Court of Uttarakhand has granted stay and restrained State from imposing export fee. Amount of Rs.106.15 Lacs (Previous Year Rs. 68.05 Lacs) paid under protest is shown as recoverable from State Govt. of Uttarakhand, in the books of account.

8. (i) Company has investment of Rs. 5,427.50 Lacs (Previous Year Rs. 8,427.50 Lacs) in equity shares and 10% cumulative redeemable preference share capital in a subsidiary company Shakumbari Sugar and Allied Industries Limited (SSAIL) whose net worth has been fully eroded during the year and SSAIL has also been declared sick industrial undertaking as per the provision of Sick Industrial Companies Act, 1985. Considering the intrinsic value of the investee assets, long term nature of investment and direction issued by the Hon''ble Board for Industrial and Financial Reconstruction (BIFR) for preparation of revival scheme by the operating agency as appointed, no provision at this stage is considered necessary by the management against investments made in above stated subsidiary namely SSAIL.

(ii) Loans and advances includes Inter corporate deposit with SSAIL amounting to Rs. 1,713.30 Lacs (Previous Year Rs. 1,538.48 Lacs) (including interest thereon), where management is confident about recoverability/ reliability of the same (Maximum balance outstanding during the year Rs. 8,199.02 Lacs, Previous Year Rs. 10,704.45 Lacs). Accordingly considering the facts as stated in Para (i) above, amount is good and fully recoverable and no provision there against is necessary.

9. The Company has challenged the legality and the validity of the financial derivative transaction dated January 15, 2008 entered into with Standard Chartered Bank, New Delhi (SCB), which is the subject matter of civil suit (Original suit) pending before the Hon''ble High Court of Delhi (High Court) at New Delhi.Provision made in earlier year had been written back in the books of accounts (read with Note. 47) in the year 2011-12 in view of the favorable opinion of the legal consultant and the fact that DRT and DRAT did not entertain application of the SCB and pending final decision of the High Court same has been considered under contingent liability.

10. In accordance with Companies (Accounting Standards) Amendment Rules 2009 as amended by Companies (Accounting Standards) (Second Amendment) Rules 2011, the Company continued its policy, as exercised in financial year 2008-09, the option of adjusting exchange differences arising on reporting of long term foreign currency monetary items related to acquisition of depreciable capital assets in the cost of the assets to be depreciated over the balance life of the assets and other long term monetary item in the "Foreign Currency Monetary Item Translation Difference" to be amortised over the period of loan. Accordingly: (a) Exchange differences (gain) / loss relating to long-term monetary items, in so far related to acquisition of depreciable capital assets, arising during the year amounting to Rs. 378.92 Lacs (Previous Year Rs. 809.65 Lacs) (net of depreciation Rs. 40.97 Lacs, Previous Year Rs. 101.83 Lacs) adjusted to the cost of fixed assets, and (b) relating to other long- term monetary items arising during the year amounting to Rs. 824.43 Lacs (Previous Year Rs. 2,795.69 Lacs) (Net of amortization of Rs. 636.14 Lacs, Previous Year Rs. 621.78 Lacs) are adjusted to "Foreign Currency Monetary Item Translation Difference".

11. (i) Catalyst is charged to the Statement of Profit & Loss as consumable (Stores & Spares) based on technically assessed useful life (1 to 3 Years).

(ii) Specialised Computer Software is amortised over its useful life of 6 years on SLM basis.

12. Related Parties Disclosure (As identified by the management):

(i) Relationships:

A. Subsidiary Companies

- IGL Finance Limited

- Shakumbari Sugar and Allied Industries Limited

- IGLCHEM International PTE. Ltd.

B. Key Management Personnel & their Relatives

- U. S. Bhartia (Chairman and Managing Director)

- M. K. Rao (Executive Director)

- Pragya Bhartia

C. Enterprises over which Key Management Personnel have significant influence:

- Ajay Commercial Co. (P) Ltd.

- J. B. Commercial Co. (P) Ltd.

- Kashipur Holdings Limited

- Polylink Polymers (India) Ltd.

- Hindustan Wires Limited

- SupreetVyapaar (P) Ltd.

- Mayur Barter (P) Ltd.

- Facit Commosales (P) Ltd.

- J. Boseck & Co. (P) Ltd.

D. Joint Venture Enterprise

- Kashipur Infrastructure and Freight Terminal Private Limited

(ii) Detail of Transactions with related parties:

(iii) Disclosure in respect of Material Related Party transactions during the year:

a) Purchases of Material are from:

- Shakumbari Sugar and Allied Industries Limited Rs. 1,914.08 Lacs (Previous year Rs. 3,142.92 Lacs).

b) Sales of Material are to:

- IGL CHEM International Pte. Ltd. Rs. 4,640.34 Lacs(Previous Year Rs. 3,328.22 Lacs).

c) Inter Corporate Deposit / Other Deposits given includes to:

- Shakumbari Sugar and Allied Industries Limited Rs. 4,398.00 Lacs (Previous year Rs. 28,488.03 Lacs)

- Deposits with IGL Finance Ltd. Rs. 2,660.00 Lacs (Previous Year Nil).

d) Inter Corporate Deposit / Others Deposits received back includes from:

- Shakumbari Sugar and Allied Industries Limited Rs. 4,398.00 Lacs (Previous year Rs. 27,750.00 Lacs)

- IGL Finance Ltd. Rs. 700.00 Lacs (Previous Year Nil).

e) Inter Corporate Deposit received includes from:

- Kashipur Holding Limited Rs. 1,738.24 Lacs (Previous Year Rs. 6,676.00 Lacs).

- Mayur Barter (P) Ltd. Nil (Previous Year Rs. 2,000.00 Lacs).

f) Inter Corporate Deposit paid back includes to:

- Kashipur Holding Limited Rs. 4,040.00 Lacs (Previous Year Rs. 10.00 Lacs).

- Mayur Barter (P) Ltd. Rs. 1,113.00 Lacs (Previous Year Nil).

g) Inter Corporate Deposit Payable includes:

- Kashipur Holding Limited Rs. 5,359.24 Lacs (Previous Year Rs. 7,661.00 Lacs).

- Mayur Barter (P) Ltd. Rs. 1,265.00 Lacs (Previous Year Rs. 2,378 Lacs).

h) ICD Receivable includes:

- Shakumbari Sugar and Allied Industries Limited Rs. 1,713.30 Lacs (Previous year Rs. 1,538.48 Lacs).

i) Others Receivable includes:

- Shakumbari Sugar and Allied Industries Limited Rs. 5,077.63 Lacs (Previous year Rs. 2,849.65 Lacs).

- IGL CHEM International Pte. Ltd. Rs. 675.56 Lacs(Previous Year Rs. 750.11 Lacs).

j) Deposit with NBFC Receivable includes:

- IGL Finance Ltd. Rs. 1,977.92 Lacs (Previous Year Nil)

13. (a) Balances of certain debtors, creditors, other liabilities and loans and advances are in process of confirmation and/or reconciliation. Management is confident that on final reconciliation/ confirmation of these, there will not be any material adjustment.

(b) (i) Loans and advances includes advance for supplies Rs. 5,077.63 Lacs (Previous Year Rs. 2,849.65 Lacs) to Shakumbari Sugar and Allied Industries Limited (Subsidiary Company) (Maximum balance outstanding during the year Rs. 8,199.02 Lacs (Previous Year Rs. 3,200.00 Lacs).

(ii) Debtors include Rs.675.56 Lacs (Previous Year Rs. 750.11 Lacs) receivable from IGL Chem International PTE Limited (Subsidiary Company) (Maximum balance outstanding during the year Rs. 1,310.79 Lacs (Previous Year Rs. 1,151.50 Lacs).

14. Foreign exchange gain amounting to Rs.312.63 Lacs (PreviousYear Rs. 32.07 Lacs), net of Loss of Rs. 4,361.19 Lacs (Previous Year Rs. 5,077.49 Lacs) has been included in the respective heads of accounts in the Statement of Profit & Loss. This has no impact on Profit / Loss for the year.

15. a) The Company has entered into a Joint Venture Agreement dated October 12, 2011 with Fourcee Infrastructure Equipments Pvt. Limited (FIEPL) for setting up a private freight terminal providing railway based logistic services and other facilities at Kashipur, Uttarakhand. The Company holds 50% stake in the Joint Venture ("the JV") and balance 50% is held by Fourcee Infrastructure Equipments Pvt. Limited. The Company has invested a total amount of Rs. 0.50 Lacs (Previous Year Rs. 0.50 Lacs) in Kashipur Infrastructure and Freight Terminal Pvt. Ltd. ("JV Company") till March 31, 2013 and also committed for total investment not exceeding of Rs. 1,490 Lacs which includes cost towards transfer of not exceeding 35 acres of land in favour of the JV.

b) In compliance with Accounting Standard 27 on Financial Reporting of Interest in Joint Ventures, following disclosures are made in respect of jointly controlled entity - Kashipur Infrastructure and Freight Terminal Private Limited, in which the Company is a joint venturer:

16. Gain on write back of provision against dispute (amounting to Rs. 1,923.98 Lacs), other provisions/ creditors no longer required and exchange loss on reinstatement of outstanding foreign exchange contracts as stated in note 48(C) (d) have been included in respective head of accounts which in previous year was considered as exceptional item.

17. Previous year''s figures have been regrouped/ rearranged/ recast wherever considered necessary.


Mar 31, 2012

A) Terms/rights attached to equity shares:

The Company has only one class of shares referred to as equity shares having a par value of Rs. 10/- per share. Each holder of equity shares is entitled to one vote per share.

In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

* The Board of Directors, proposed a dividend of Rs. 3/- (Previous year Rs. 1.5/-) per equity share. The proposal is subject to approval in the ensuing Annual General Meeting. The total dividend appropriation for the year ended March 31, 2012 amounted to Rs. 972.18 Lacs (Previous Year Rs. 486.09 Lacs) including corporate dividend tax of Rs. 135.70 Lacs (Previous Year Rs. 67.85 Lacs)

Notes:

1 The Term Loans inter-se, are secured / to be secured by mortgage of all immovable properties of the Company both present and future and hypothecation of all movable properties of the Company (save and except book debts) including movable machinery, machinery spares, tools and accessories, both present and future subject to prior charges created and / or to be created in favour of the bankers of the Company on stocks, book debts and other specified movable properties for working capital requirements / Buyers Credit.

2 Rupee Term Loans includes loans from Banks of Rs. 33.20 Lacs (Previous Year Rs. 59.44 Lacs) and loans from others Rs. 110.09 Lacs (Previous Year Rs. 114.77 Lacs) secured by hypothecation of Motor Vehicles purchased there under which is repayable on different dates. Further, Rupee Term Loans from others includes Rs. 350.00 Lacs (Previous Year Rs. 150.00 Lacs) secured against bank guarantee.

3 Term Loan from bank outstanding as at 31.03.2012 Nil (Previous Year Rs. 250.00 Lacs).

4 Term Loan from bank of Rs. 300.00 Lacs (Previous Year Rs. 600.00 Lacs), is repayable in June,2012.

5 Term Loan from bank of Rs. 554.25 Lacs (USD 10.89 Lacs) (Previous Year Rs. 1,000.00 Lacs), is repayable in July, 2012.

6 Term Loan from bank of Rs. 1,625.00 Lacs (Previous Year Rs. 2,843.75 Lacs), is repayable in 4 equal quarterly installments.

7 Term Loan from bank of Rs. 1,360.00 Lacs (Previous Year Rs. 2,440.00 Lacs), is repayable in 4 equal quarterly installments of Rs. 270.00 Lacs and last quarter installment of Rs. 280.00 Lacs.

8 Term Loan from bank of Rs. 937.50 Lacs (Previous Year Rs. 1,687.50 Lacs), is repayable in 5 equal quarterly installments.

9 Term Loan from bank of Rs. 5,000.00 Lacs (Previous Year Nil), is repayable in 12 quarterly installments (2 installments for Rs. 208.50 Lacs each, 8 installments of Rs. 417.00 Lacs each and remaining 2 installments of Rs. 623.50 Lacs each).

10 Term Loan from bank of Rs. 2,400.00 Lacs (Previous Year Rs. 3,337.50 Lacs), is repayable in 8 equal quarterly installments.

11 Term Loan from bank of Rs. 2,939.28 Lacs (USD 57.77 Lacs), (Previous Year Rs. 3,625.00 Lacs), is repayable in 12 quarterly installments (11 installments for Rs. 255.59 Lacs each and remaining 1 installments for Rs. 127.79 Lacs).

12 Term Loan from bank of Rs. 3,200.00 Lacs (Previous Year Rs. 4400.00 Lacs ), is repayable in 8 quarterly installments (4 installment for Rs. 350.00 Lacs each and remaining 4 installments for Rs. 450.00 Lacs each).

13 Term Loan from bank of Rs. 1605.29. lacs (USD 31.55 Lacs) (Previous Year Rs. 3,750.00 Lacs), is repayable in 2 equal quarterly installments of Rs. 802.65 Lacs each).

14 Term Loan from bank of Rs. 3,550.00 Lacs (Previous Year Rs. 6,362.50 Lacs), is repayable in 4 equal quarterly installments.

15 Term Loan from bank of Rs. 5,010.64 Lacs (Previous Year Rs. 5,000.00 Lacs) is repayable in 12 equal quarterly installments.

16 Term Loan from bank of Rs. 2,003.30 Lacs (Previous Year Rs. 4,000 Lacs), is repayable in 4 equal quarterly installments of Rs. 500.00 Lacs each.

17 Term Loan from bank of Rs. 2,500 Lacs (Previous Year Nil), is repayable in 12 equal quarterly installments after moratorium period of 1 year from disbursement.

18 Term Loan from bank of Rs. 5,678.06 Lacs (USD 111.60 Lacs) (Previous Year Rs. 4,122.48 Lacs, USD 92.43 Lacs), is repayable in 16 equal quarterly installments of Rs. 354.88 Lacs each).

19 Term Loan from bank of Rs. 11,139.67 Lacs (USD 218.94 Lacs) (Previous Year Rs. 10,000 Lacs), is repayable in 45 monthly installments (3 equal installments of Rs. 34.35 Lacs, 12 equal installments of Rs. 40.07 Lacs, 24 equal installments of Rs. 286.22 Lacs, 5 equal installments of Rs. 629.68 Lacs and remaining Rs. 538.10 Lacs is payable on 31-12-2015).

20 Term Loan from bank of Rs. 4,500.00 Lacs (Previous Year Rs. 3,375.00 Lacs), is repayable in 16 equal quarterly installments of Rs. 281.25 Lacs each.

21 Term Loan from bank of Rs. 3,273.81 Lacs (Previous Year Rs. 1,500.00 lacs), is repayable in 91 equal monthly installments of Rs. 35.75 Lacs each and remaining 1 installments of Rs. 20.56 Lacs.

22 Term Loan from bank of Rs. 5,000 Lacs (Previous Year Nil), is repayable in 8 quarterly installments of Rs. 625.00 Lacs each with moratorium period of 12 months.

23 Term Loan from bank of Rs. 2,500.00 Lacs (Previous Year Nil), is repayable in 8 quarterly installments of Rs. 312.50 Lacs each . First installments will fall due in quarter ending 18 month from the date of first disbursement.

24 Term Loan from bank of Rs. 2,436.50 Lacs (Previous Year Nil), is repayable in 12 equal quarterly installments commencing after a moratorium of 2 years from the date of first disbursement.

25 Term Loan from bank of Rs. 2,625 Lacs (Previous Year Nil), is repayable in 12 equal quarterly installments commencing after a moratorium of 2 years from the date of first disbursement.

26 Term Loan from DBT Bihorama Rs. 350.00 Lacs (Previous Year Rs. 150.00 Lacs) is repayable in 10 equal half yearly installment after June 2012.

27 Term Loan from bank of Rs. 515.16 Lacs (USD 10.125 Lacs) (Previous Year Rs. 1,053.67 Lacs, UDS 23.63 Lacs), is repayable in 3 equal quarterly installments.

28 Term Loan from bank of Rs. 2,228.92 Lacs (USD 43.81 Lacs) (Previous Year Rs. 3,331.20 Lacs, USD 74.69 Lacs), is repayable in 7 quarterly equal installments of Rs. 318.42 Lacs.

29 Buyers Credit of Rs. 483.97 Lacs is secured against non fund based facility sanctioned to the Company and due for payment in March 2013.

30 Loan from related parties of Rs. 12,000.00 Lacs is payable on demand after a period of 3 years from the respective date of loans (Rs. 2,604.00 Lacs is repayable in 2013-14 and Rs. 9,396.00 Lacs is repayable in 2014-15).

31 Term loans from bank of Nil (Previous Year Rs. 2,212.98 Lacs, USD 48.19 Lacs).

Working Capital Loans from Banks are secured / to be secured by way of hypothecation of book debts and stocks including in-transit and second charge on all immovable properties of the Company. Buyers Credit facility is secured against non-fund based facility sanctioned to the Company. Further Packing credit facility of Rs. 15,115.27 Lacs (included in working capital loans) are also secured by pledge of deposit.

1) (A) Contingent Liabilities not provided for (As Certified by the Management) :-

(i) In respect of :- (Rs.in Lacs)

Particulars As on As on

31.03.2012 31.03.2011

Central Excise/ State Excise 4,573.52 5,633.08

Customs 261.93 350.12

Service Tax 182.28 213.80

Sales Tax 31.84 31.84

Other matters 2,003.36 79.38

7,052.93 6,308.22

(i) Claims against the Company not acknowledge as debts amounting to Nil (Previous Year: Rs. 303.24 Lacs).

(ii) Bills discounted with Banks Rs. 7,925.98 Lacs (Previous Year: Rs. 3,365.09 Lacs).

(iii) Corporate Guarantee to banks for loan availed by Shakumbari Sugar & Allied Industries Limited (a subsidiary company) amounting to Rs. 19,663.93 Lacs. (Previous Year Rs. 22,633.13 Lacs)

(B) Custom duty saved on import of raw material under Advance License pending fulfillment of export obligation is amounting to Rs. 1,617.19 lacs (Previous year Rs. 1,413.79 Lacs).

The management is of the view that considering the past export performance and future prospects there is certainty that pending export obligation under advance licenses, will be fulfilled before expiry of the respective advance licenses. Accordingly and on "Going Concern Concept" basis there is no need to make any provision for custom duty saved.

2) Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances ofRs. 4,390.11 Lacs, previous year Rs. 2,671.70 Lacs) are Rs. 9,075.68 Lacs (Previous year Rs. 3,581.21 Lacs).

3) Since it is not possible to determine with reasonable certainty/accuracy insurance claims and interest from customers, the same are continued to be accounted on settlement basis.

4) Advances recoverable in cash or kind includes loans and advances in the nature of Loan recoverable from the employees amounting to Rs. 224.40 Lacs (Previous year Rs. 261.37 Lacs) where there is no interest or interest is below Section 372A of the Companies Act (Maximum Balance outstanding during the year Rs. 353.14 Lacs, previous year Rs. 424.28 Lacs). Out of the above Rs. 59.47 Lacs (Previous Year Rs. 66.04 Lacs) either has repayment schedule beyond seven years or there is no repayment schedule (Maximum Balance outstanding during the year Rs. 75.39 Lacs, previous year Rs. 127.77 Lacs).

b) Defined Benefit Plan:

The employees' gratuity fund scheme managed by a trust is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The obligation for leave encashment is recognized in the same manner as gratuity.

The estimate of rate of escalation in salary considered in actuarial valuation, taken into account inflation, seniority, promotion and other relevant factors including supply and demand in the employment market. The above information is certified by the actuary.

The principal assumptions are the discount rate & salary growth rate. The discount rate is generally based upon the market yields available on Government bonds at the accounting date with a term that matches that of the liabilities.

5) In the earlier years, the State Government of Uttar Pradesh (UP) had imposed a levy of license fee on transfer of alcohol from the distillery to the chemical plant. The levy was challenged by the Company in the Hon'ble Supreme Court and on 18th October, 2006 the matter was finally decided by The Hon'ble Supreme Court in favour of the Company. Accordingly, Company has filed an application for refund of amount paid of Rs. 507.05 Lacs (shown as recoverable under the head Loans and Advances) with State Government of Uttarakhand.

6) In the earlier years, the State Government of Uttarakhand had levied Export Pass Fee on ENA/RS export outside India. The matter is finally disposed of by Hon'ble High Court of Uttarakhand vide its Order dated 9th January, 2012 and has declared the levy of said fee as unsustainable and irrecoverable. Amount of Rs. 17.01 Lacs paid in earlier years along with Rs. 51.04 Lacs paid in current year are shown as recoverable from State Govt. of Uttarakhand in the books of account.

7) (i) Company has investment of Rs. 5,427.50 Lacs (Previous year Rs. 5,427.50 Lacs) in equity shares and 10% cumulative redeemable preference share capital in a subsidiary company Shakumbari Sugar and Allied Industries Limited (SSAIL) where net worth as per the audited accounts for the year ended 31st March 2012 have been fully eroded.

(ii) Company has an investment of Rs. 27.41 Lacs (Previous year Rs. 27.41 Lacs) in equity share capital of subsidiary company IGL Chem International PTE. LTD. (IGL CIP) where book value is negative / lower.

Considering the intrinsic value of the investee assets and long term nature of investment made, no provision at this stage is considered necessary by the management for investments in above stated subsidiaries namely SSAIL and IGL CIP

(iii) Loans and advances includes Inter corporate deposit to SSAIL amounting to Rs. 1,546.67 lacs (Previous year Rs. 463.39 lacs) (including interest thereon), where management is confident about recoverability/ reliability of the same. (Maximum balance outstanding during the year Rs. 10,704.45 Lacs, previous year Rs. 4,514.28 Lacs)

8) The Company has challenged the legality and the validity of the financial derivative transaction dated 15th January 2008 entered into with Standard Chartered Bank, New Delhi (SCB), which is the subject matter of civil suit (Original suit) pending before the Hon'ble High Court of Delhi (High Court) at New Delhi. Provision made in earlier year has been written back in the books of accounts in view of the favorable opinion of the legal consultant and order of DRT and DRAT not to entertain application of the SCB, pending final decision of the High Court same has been shown under contingent liability.

9) In accordance with Companies (Accounting Standards) Amendment Rules 2009 as amended by Companies (Accounting Standards) (Second Amendment) Rules 2011, the Company continued its policy, as exercised in financial year 2008-09, the option of adjusting exchange differences arising on reporting of long term foreign currency monetary items related to acquisition of depreciable capital assets in the cost of the assets to be depreciated over the balance life of the assets and other long term monetary item in the "Foreign Currency Monetary Item Translation Difference" to be amortized over the period of loan. Accordingly: (a) Exchange differences (gain)/ loss relating to long-term monetary items, in so far related to acquisition of depreciable capital assets, arising during the year amounting to Rs. 809.65 Lacs (Previous year Rs. 220.02 Lacs) (net of depreciation Rs. 101.83 Lacs, previous year Rs. 21.34 Lacs.) adjusted to the cost of fixed assets, and (b) relating to other long-term monetary items arising during the year amounting to Rs. 2795.69 Lacs (Previous year Rs. 1.13 Lacs) (Net of amortization Rs. 621.78 Lacs, previous year Rs. 1.13 Lacs) are adjusted to "Foreign Currency Monetary Item Translation Difference".

10) (i) Catalyst is charged to the Profit & Loss Account as consumable (Stores & Spares) based on technically assessed useful life (1 to 3 Years).

(ii) Specialized Computer Software is amortized over its useful life of 6 years on SLM basis.

11) Capital work-in-progress includes machinery under installation, buildings under construction, construction/ erection material in hand, technical know-how fees, advances paid for plant & machinery and other assets and also includes the following pre-operative expenses:

12) Related Parties Disclosure (As identified by the management):

(i) Relationships:

A. Subsidiary Companies

- IGL Finance Limited

- Shakumbari Sugar and Allied Industries Limited

- IGL CHEM International Pte. Ltd.

B. Key Management Personnel & their Relatives

- U. S. Bhartia (Chairman and Managing Director)

- M. K. Rao (Executive Director)

- Pragya Bhartia

C. Enterprises over which Key Management Personnel have significant influence:

- Ajay Commercial Co. (P) Ltd.

- J. B. Commercial Co. (P) Ltd.

- Kashipur Holdings Limited

- Polylink Polymers (India) Ltd.

- Hindustan Wires Limited

- Supreet Vyapaar (P) Ltd.

- Mayur Barter (P) Ltd.

- Facit Commosales (P) Ltd.

- J. Boseck & Co. (P) Ltd.

D. Joint Venture Enterprise

- Kashipur Infrastructure and Freight Terminal Private Limited

13) (a) Balances of certain Debtors, creditors, other liabilities and loans and advances are in process of confirmation and/or reconciliation. Management is confident that on final reconciliation/ confirmation of these, there will not be any material adjustment.

(b) i) Loans and advances includes advance for supplies Rs. 2,849.65 Lacs (Previous year Rs. 2,333.70 Lacs) to Shakumbari Sugar and Allied Industries Limited (Subsidiary Company) (Maximum balance outstanding during the year Rs. 3,200.00 Lacs (Previous year Rs. 2,700.26 Lacs).

(ii) Debtors includes Rs. 750.11 Lacs (Previous year Rs. 344.40 Lacs) receivable from IGL Chem International Pte Limited (Subsidiary Company) (Maximum balance outstanding during the year Rs. 1,151.50 Lacs (Previous year Rs. 447.62 Lacs).

14) Foreign exchange gain amounting to Rs. 32.07 Lacs (previous year Rs. 1,121.50 Lacs), net of Loss of Rs. 5,077.49 Lacs (previous year Rs. 2,663.77 Lacs) has been included in the respective heads of accounts in the Profit Loss Account. This has no impact on Profit / Loss for the year.

15) The Company has entered into a Joint Venture Agreement dated October 12, 2011 with Fourcee Infrastructure Equipments Pvt. Limited (FIEPL) for setting up a private freight terminal providing railway based logistic services and other facilities at Kashipur, Uttarakhand. The Company holds 50% stake in the Joint Venture and 50% in held by Fourcee Infrastructure Equipments Pvt. Limited. The Company has invested a total amount of Rs. 0.50 lacs till March 31, 2012 and also committed for additional investment of Rs. 1700 lacs.

16) Kashipur Infrastructure and Freight Terminal Private Limited (KIFTPL), is a Joint Venture wherein the Company holds 50% stake. KIFTPL has not started any commercial activities till date. Pending approval and adoption of audited financial statements for the year ended 31st March 2012 by the Board of Directors of KIFTPL disclosures in compliance with Accounting Standard 27 on "Financial Reporting of Interest in Joint Ventures", have not been made. The amount involved is not material.

Notes:

Primary Segment reporting (by business segment)

Segments have been identified in line with Accounting Standard on 'Segment Reporting' (AS-17), taking into account the organizational structure as well as the differential risks and returns of these segments. The Company has identified three segments i.e. business Industrial chemical, Liquor and others which includes herbal products and reported accordingly.

Secondary Segment reporting (by geographical segment-customer location)

In respect of secondary segment information, the Company has identified its geographical segment as (a) domestic and (b) overseas on the basis of location of customers.

Reportable segments

Reportable segments have been identified as per the quantitative criteria specified in 'Accounting Standard 17: Segment Reporting'.

Segment Composition

Industrial Chemicals Segment comprises Glycols, Specialty Chemicals, Natural Gum and other related goods etc.

Liquor Segment comprises manufacture and sale of Ethyl Alcohol (Potable).

'Others' primarily includes Herbal Products and Rental.

17) Exceptional items represents gain on write back of provision against disputed amount (as stated in note 35 above amounting to Rs. 1,923.98 lacs) and other provisions/ creditors no longer required net of exchange loss on reinstatement of outstanding foreign exchange contracts. (Refer note 49(C)(d)).

(b) Exchange fluctuation loss of Rs. 7,652.72 Lacs (Previous year gain of Rs. 1295.17 Lacs), is net of gain of Rs. 4,366.14 Lacs (Previous year loss of Rs. 1,256.34 Lacs).

(c) The Company uses derivative instruments for hedging possible losses and exchange fluctuation loss is Rs. 1,373.53 Lacs net off gain of Rs. 1,361.20 Lacs (Previous year gain of Rs. 649.17 Lacs net of loss of Rs. 232.90 Lacs) which is inclusive of loss of Rs. 2,473.14 Lacs (Previous year loss of Rs. 202.90 Lacs) provision for mark to market loss on account of all outstanding financial transactions as on 31st March 2012.

(d) Considering the principle of prudence and announcement made by The Institute of Chartered Accountants of India 'Accounting for Derivatives' in March, 2008, the Company has provided an amount of Rs. 2,473.14 Lacs included in (a) (Previous year Rs. 202.90 Lacs) on outstanding contracts to the profit & loss account, account of foreign exchange derivative instruments and the same shown as part of exceptional item.

18) During the year ended March 31, 2012, the revised Schedule VI notified under the Companies Act, 1956, has become applicable to the Company. Thus previous year figures have been reclassified/ recanted suitably. The adoption of revised Schedule VI does not impact recognition and measurement principles followed for preparation of financial statements except for presentation and disclosures, wherever required.


Mar 31, 2010

The management is of the view that considering the past export performance and future prospects there is certainty that pending export obligation under advance licenses, will be fulfilled before expiry of the respective advance licences. Company has been advised that considering this and "Going Concern Concept" basis, there is no need make any provision for customs duty saved.

2) Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances of Rs. 1368.52 Lacs (Previous Year Rs. 4058.40 Lacs)) are Rs. 1789.73 Lacs (Previous Year: Rs.6532.38 Lacs).

3) Since it is not possible to determine with reasonable certainty/accuracy insurance claims and interest from customers, the same are continued to be accounted on settlement basis.

4) Advances recoverable in cash or kind include loans and advances in the nature of Loan recoverable from the employees where there is:

No interest or interest is below Section 372A of the Companies Act Rs. 154.58 Lacs (Previous Year Rs. 184.74 Lacs) Maximum Balance outstanding during the year Rs. 236.45 Lacs (Previous Year Rs.282.96 Lacs).

Repayment schedule is beyond seven years or no repayment schedule Rs. 108.69 Lacs (Previous Year Rs. 104.69 Lacs). Maximum Balance outstanding during the year Rs. 130.24 Lacs (Previous Year Rs. 122.00 Lacs).

b) Defined Benefit Plan:

The employees gratuity fund scheme managed by a trust is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The obligation for leave encashment is recognized in the same manner as gratuity.

The estimate of rate of escalation in salary considered in actuarial valuation, taken into account inflation, seniority, promotion and other relevant factors including supply and demand in the employment market. The above information is certified by the actuary.

The principal assumptions are the discount rate & salary growth rate. The discount rate is generally based upon the market yields available on Government bonds at the accounting date with a term that matches that of the liabilities.

6) In the earlier years, the State Government of Uttar Pradesh (UP) had imposed a levy of licence fee on transfer of alcohol from the distillery to the chemical plant. The levy was challenged by the Company in the Honble Supreme Court and on 18th October, 2006 the matter was finally decided by The Honble Supreme Court in favour of the Company. Accordingly, Company has filed an application for refund of amount paid Rs.507.05 lacs (shown as recoverable under the head Loans & Advances) with State Government of Uttarakhand.

7) In the earlier years, the State Government of Uttarakhand had levied Export Pass Fee on ENA/RS export outside India. On the application of the Company the Honble High Court of Uttarakhand vide its Order dated 13th November, 2007 has granted stay on charging of Export Pass Fees till further Order. An amount of Rs.44.53 Lacs paid in earlier years is shown as recoverable from State Govt, of Uttarakhand in the books of account.

8) Company has investment in a Subsidiary Company, viz, M/s IGL Finance Limited amounting to Rs.75.00 Lacs (net of provision for diminution of Rs.425.00 Lacs). During the year, Honble High Court of Nainital vide its order dated 11th May, 2009 has approved reduction in its paid-up Equity Share capital. With such reduction, par and fully paid up value of equity share of Rs.10 each was reduced to Rs.2 each and 5 (five) fully paid up equity shares of Rs.2 each have been consolidated into 1(one) equity share of Rs.10 each fully paid up.

9) (i) Company has investment of Rs.2827.50 Lacs and Rs. 1000.00 Lacs in equity share capital and 10%

cumulative redeemable preference share capital respectively in its Subsidiary Company Shakumbari Sugar and Allied Industries Limited (SSAIL) where book value is lower than carrying cost. During the year the

Honble High Court of Allahabad vide its order dated 24"July,2009 has approved the reduction in its paid- up Equity share capital. With such reduction in par and fully paid up value of equity share of Rs.10 each reduced to Rs.5 each, 2 (two) fully paid up equity shares of Rs 5 each have been consolidated into 1 (one) equity share of Rs.10 each fully paid up.

(ii) Company has an investment of Rs.27.41 Lacs in equity shares of subsidiary IGL Chem International PTE. LTD. (IGL CIP ) where book value is negative / lower.

Considering the long term in nature and intrinsic value of the investee assets no provision at this stage is considered necessary by the management for investment in above stated subsidiaries namely SSAIL and IGLCIP.

10) The Company has challenged the legality and the validity of the financial derivative transaction dated 15h January 2008 entered into with Standard Chartered Bank, New Delhi (SCB), which is the subject matter of civil suit (Original suit) pending before the Honble High Court of Delhi at New Delhi Accordingly, of the total provision considered in books on prudence basis of Rs 1923.98 Lacs (Previous year Rs.4169 56 Lacs) excluding interest, if any, made against the said financial transaction dated 15" January 2008 is disputed and is subject to the final outcome of the aforesaid court proceedings

11) In accordance with Companies (Accounting Standards) Amendment Rules, 2009, the Company continued its policy, as exercised in previous year, the option of adjusting exchange differences arising on reporting of long term foreign currency monetary items related to acquisition of depreciable capital assets in the cost of the assets to be depreciated over the balance life of the assets and other long term monetary item in the "Foreign Currency Monetary Item Translation Difference". Accordingly: (a) Exchange differences relating to long-term monetary items, in so far related to acquisition of depreciable capital assets, arising during the financial year 2009-10 amounting to Rs.1042.85 Lacs (Gain) ( Previous year Rs.3900.43 Lacs (Loss) ) (net of depreciation Rs.(89.10) Lacs) ( Previous year Rs 188.28 Lacs.) are adjusted to the cost of fixed assets, and (b) relating to other long-term monetary items arising during the year amounting to Rs.47.58 Lacs (Gain) (Previous year Rs.267.26 Lacs (Loss) [Net of amortization Rs (38 38) Lacs (Previous year Rs 63.11 Lacs)] are adjusted to "Foreign Currency Monetary Item Translation Difference"

12) Exceptional items represent exchange (gam) / loss of Rs.( 1626.58) Lacs (net) (Previous year Rs.4743 67 Lacs (net)) on reinstatement of outstanding foreign exchange contracts

13) As required by section 22 of The Micro, Small and Medium Enterprises Development Act 2006 the following information is disclosed:

The above information regarding Micro, Small and Medium Enterprises has been determined to the extent such parties have been identified on the basis of information available with the Company.

14) (i) Catalyst is charged to the Profit & Loss Account as consumable (Stores & Spares) based on technically assessed useful life (1 to 3 Years ). (ii) Specialised Computer Software is amortised over its useful life of 6 years on SLM basis.

15) Capital work-in-progress includes machinery under installation, buildings under construction, construction/ erection material in hand, technical know-how fees, advances paid for plant & machinery and other assets and also includes the following pre-operative expenses:

16) Related Parties Disclosure:

(As identified by the management)

(i) Relationships:

A. Subsidiary Companies

IGL Finance Limited

Shakumbari Sugar and Allied Industries Limited

- IGL CHEM International Pte. Ltd.

B. Key Management Personnel & their Relatives

U. S. Bhartia

- M. K. Rao Pragya Bhartia

C. Enterprises over which Key Management Personnel have significant influence:

Ajay Commercial Co. (P) Ltd.

- J. B. Commercial Co. (P) Ltd. Kashipur Holdings Limited Polylink Polymers (India) Ltd. Hindustan Wires Limited

19) Revenue expenditure on Research & Development of Rs. 193.64 Lacs (Previous year: Rs. 157.41 Lacs) incurred during the year has been charged to profit and loss account.

20) (a) Balances of certain Debtors, creditors, other liabilities and loans and advances are in process of confirmation and / or reconciliation. Management is confident that on final reconciliation / confirmation of these, there will not be any material adjustment.

(b) (i) Loans and advances include Rs. Nil receivable from Shakumbari Sugar and Allied Industries Limited (Subsidiary Company) (maximum balance outstanding during the year Rs 2400 lacs).

(ii) Debtors include Rs. 192.16 lacs receivable from IGL Chem International Pte Ltd. (Subsidiary Company) (maximum balance outstanding during the year Rs 445.94 lacs).

21) Foreign exchange gain (net of Loss Rs.784.38 Lacs) amounting to Rs 3579.23 Lacs(previous year loss {net of gain Rs.1353 lacs} amounting to Rs.1802 Lacs) has been included in the respective heads of accounts in the Profit Loss Account. This has no impact on Profit / Loss for the year.

Notes:

Primary Segment reporting (by business segment)

Segments have been identified in line with Accounting Standard on Segment Reporting (AS-17), taking into account the organisational structure as well as the differential risks and returns of these segments. The company has identified three segments i.e. business chemical, liquor and others which includes guar gum, software development and Ennature Bio-pharma and reported accordingly.

Secondary Segment reporting (by geographical segment-customer location)

In respect of secondary segment information, the Company has identified its geographical segment as (a) domestic and (b) overseas on the basis of location of customers.

Reportable segments

Reportable segments have been identified as per the quantitative criteria specified in Accounting Standard 17: Segment Reporting.

Segment Composition

Chemicals Segment comprises manufacture and sale of Ethylene Glycol. Di-ethylene Glycol. Heavy Glycol and EO Derivatives

Liquor Segment comprises manufacture and sale of Ethyl Alcohol (Potable).

Others primarily include Guai Gum, Software development and Ennature Bio-pharma.

23) Previous years figures have been regrouped / rearranged / recast wherever considered necessary.

24) Additional Information:

Note:

(a) Liability of gratuity has not been ascertained separately, since funded through group policy. Leave encashment liability can not be ascertained separately, hence not included in above.

(b) Shareholders at their meeting held on 24,h April, 2009 had approved revision in the remuneration of CMD w.e.f 1st April, 2008. Pending approval of the Central Govt., remuneration of CMD is provided based on Schedule XIII of the Companies Act,1956 and additional amount, (in terms of the resolution passed by the shareholders) if any, will be accounted for on receipt of the approval.

(c) In the absence of profit as per section 198 no commission is provided to CMD.

Notes:

@@ Standard Capacity

** Net of captive consumption

. As ceritified by the Management and relied upon by the auditors. begin a technical matter # Production as received in bonded tank farm.

@ Under the Industrial Policy Statement dated 24th July.1991 and the notification issued thereunder, no licensing is required for these products.

*** Including CO2 recieved from Kashipur 354MT (Previous year 967MT) net of transit loss 6,MT (Previous year 5MT )

## Net of Evaporation loss. ** Net of captive consumption.

As certified by the Management and relied upon by the auditors, being a technical matter # Production as received in bonded tank farm.

@ Under the Industrial Policy Statement dated 24th July, 1991 and the notifications issued thereunder, no licensing is required for these products.

*** Including C02 received from Kashipur 354MT (Previous year 967MT) net of transit loss 6MT (Previous year 5MT) ## Net of Evaporation loss.

Notes:

## Includes 712 MT captively consumed in Ethylene Oxide derivatives (Previous year: 784 MT) and 2 MT transferred to

Dehradun Plant (Previous year 12 MT) @@ Includes 2984 MT Captively consumed in Ethylene Oxide derivatives (Previous year 1912 MT)

+Includes 6 MT captively consumed in Ethylene Oxide derivatives (Previous year 8MT) $ Includes 223 MT Stock in Transit/Port (Previous year 60 MT) & Includes 1817 MT Stock in Transit/Port (Previous year 819 MT) A Includes 828 MT Stock in Transit/Port (Previous year NIL MT) AA Includes Nil MT Stock in Transit/Port (Previous year 106 MT )

+Includes 44393639 NM3 captively consumed. (Previous year 43564070 NM3)

# Include 70 MT captively consumed. (Previous year 4 MT)

++ Include 15448360 NM3 Captively consumed. (Previous year 14407931 NM3) and nil NM3 transferred to Dehradun Plant (Previous year 3952 NM3)

$$ Include 16466 KBL transferred to Kashipur Plant for Captive Consumption (Previous year 17245 KBL) and 6128 KBL captively consumed (Previous year 2645 KBL).

*** Includes 5241 MT captively consumed (Previous year 1075 Mt) and 298 MT transferred to Dehradun Plant (Previous year 96) and 360 MT transferred to Gorakhpur plant (Previous Year 972)

$$$ Include 116Kg captively consumed (Previous year NIL)

b) The Company uses derivative instruments for hedging possible losses and exchange fluctuation loss is Rs 670.02 lacs net off gain Rs. 1223.67 (previous year Rs 6108.01 Lacs) which is inclusive of Rs NIL provision for mark to market loss on account of all outstanding financial transactions as on 31st March 2010.

c) Considering the principle of prudence and announcement made by The Institute of Chartered Accountants of India Accounting for Derivatives in March, 2008, the Company has provided an amount of Rs 416.67 Lacs included in (b) (Previous year 4743.28) on outstanding contracts to the profit & loss account (read with note no. 12 herein above)

 
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